Maharashtra seeks Centre intervention for adequate coal supply

Sunday, 04 Mar 2012

Business Standard reported that the Maharashtra government has sought the central government’s intervention to get adequate coal supply from Coal India subsidiaries and Singareni Collieries.

What state run Maharashtra State Power Generation Company (Mahagenco) gets since November last year is 18 to 20 rakes a day as against the daily domestic coal requirement of 24 rakes. The deficit from Western Coalfields is affecting the generation of the thermal generation plant with a capacity of 6,480 MW. Mahagenco is losing daily generation of 1,000 MW for want of coal.

Further, the government said the shortfall of coal would force Mahagenco to procure imported coal or domestic coal available with traders at very high prices, which would lead to rise in cost of power substantially.

Mahagenco imports nearly 3.35 million tonnes per annum and annually procures 35 million tonnes from domestic sources. According to the state government, non assurance of fuel from coal company would create issues of further loan disbursement from financial institutions to Mahagenco.

A senior government official said the domestic coal for the state’s power plants come from Western Coalfields, South Eastern Coalfields, Mahanadi Coalfields and Singareni Collieries Company.

He told BS that “Mahagenco has signed coal supply agreements with Western Coalfields on November 21st 2009, for 20 years. It will be reviewed every five years. However, at present, power plants are faced with critically low coal stocks due to the shortage of coal rakes and inadequate coal rake movement.”

The official said Mahagenco has been consistently raising this issue with coal companies, the Central Electricity Authority and the Railway Board.

The official said that “Since the last 10 months, raw coal materialization of Mahanadi Coalfields (April 2011-January 2012) to Mahagenco was only at 53.28%. This was affecting the power generation of Parli, Paras and Khaparkheda plants with total generation capacity above 1,800 MW. Also, less receipt of coal from coal companies has seriously affected the stock of Mahagenco thermal power stations as on January 31.”

Source - Business Standard